US: Talbots sales to be hit by store closures
By Petah Marian | 13 April 2012
- Fourth-quarter net losses widened to $53.2m
- Sales fell 1.1% to $289.4m
- Full-year net losses of $111.9m
- Sales down 5.9% to $1.1bn
US women's wear retailer Talbots is forecasting further sales declines as it continues to shutter stores.
The retailer said it expects first-quarter sales to be down 9.6% to US$272m due to its store rationalisation plan.
Over the fourth-quarter, the company closed 47 stores. Over 2011, it closed 82 stores and is working to shutter some 110 outlets in total by early fiscal 2013.
The comments came yesterday (12 April) as the retailer widened its fourth-quarter net losses to US$53.2m, from a $2.8m loss in the same period last year.
Net sales fell 1.1% to $289.4m in the three months to 28 January, while comparable sales were "approximately flat" with the previous year. Operating loss was $53.6m compared to approximately break even in the previous year.
Talbots recorded a $111.9m net loss for the full year, while net sales declined 5.9% to $1.1bn, and consolidated comparable-sales declined 5.6% over the quarter.
"Our fourth quarter performance reflects an aggressive promotional and markdown strategy in a challenging retail environment," said president and CEO Trudy Sullivan.
"This resulted in a sequential improvement in both customer traffic and sales trends compared to the third quarter. We were able to clear through excess merchandise to better position ourselves for spring, ending the year with total inventories up approximately 4%.
"We remain focused on enhancing our product and executing our key strategic initiatives, as the Board continues its evaluation of a full range of strategic alternatives."
Sectors: Apparel, Finance, Retail
Companies: Talbots
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